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In recent years, Farr Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of
In recent years, Farr Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below.
Problem 9-7A In recent years, Farr Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine 1 2 3 Acquired Jan. 1, 2012 July 1, 2013 Nov. 1, 2013 Cost $139,000 79,000 92,530 Salvage Value $46,300 11,600 6,130 Useful Life (in years) 9 5 7 Depreciation Method Straight-line Declining-balance Units-of-activity For the declining-balance method, Farr Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 32,000. Actual hours of use in the first 3 years were: 2013, 840; 2014, 6,050; and 2015, 7,540. Compute the amount of accumulated depreciation on each machine at December 31, 2015. MACHINE MACHINE 3 2 $ $ $ MACHINE 1 Accumulated Depreciation at December 31 Link to Text Link to Text If machine 2 was purchased on April 1 instead of July 1, what would be the depreciation expense for this machine in 2013? In 2014? 201 4 2013 $ Depreciation Expense $Step by Step Solution
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